FY 2027 Budget
approvedSummary
The FY 2027 Budget covers the City of Fairfax's general and sub-fund operations for the fiscal year beginning July 1, 2026. Budget deliberations began as early as September 2025, when staff presented revenue comparisons against Northern Virginia peers with the real estate tax rate as the primary variable. On March 10, 2026, Council advertised a maximum real estate tax rate of $1.095 per $100 of assessed value (the city manager's proposed rate had been $1.08). Throughout April 2026, Council worked through eight budget memos, reached consensus to introduce a BPOL tax increase and a Transient Occupancy Tax increase (capped at 12%) on the April 14 consent agenda, and received updated revenue/expenditure scenarios on April 14 and April 28. The FY 2027 Budget was adopted unanimously (6-0) at a Special Meeting on May 5, 2026, with the final real estate tax rate set at $1.0725 per $100 — lower than both the proposed and advertised rates — along with a personal property/machinery and tools rate of $4.13 per $100, a volunteer fire/rescue rate of $0.01 per $100 (all effective January 1, 2026), employee compensation adjustments, the FY 2027–2031 Capital Improvement Program, and appropriation resolutions R-26-16 through R-26-24 covering all budget funds.
Recent updates
[3g] The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
[1d] Council discussed General Fund questions, directed staff to review Budget Memos #1, 5, 6, and 8, and reached consensus on next steps for the BPOL tax and Transient Occupancy Tax introductions.
What members have said
At the May 5, 2026 adoption meeting, Hall noted that the city manager had originally proposed a rate of $1.08 and the advertised rate was $1.095, but through continued effort the final rate was brought down to $1.0725. She explained this translates to a $462.50 increase for the average-priced home — $335 from natural assessment growth and $127.50 from the tax rate increase — and stated she felt it was important for the public to understand how those numbers break down.
On May 5, 2026, Hardy-Chandler moved to approve the appropriation resolutions (R-26-16 through R-26-24) for all budget funds for the fiscal year beginning July 1, 2026, reflecting all changes approved as part of the FY 2027 budget adoption.
Positions as recorded in meeting minutes; votes without recorded comment aren’t summarized.
Full history
- Apr 7, 2026City Council · item 1d
[1d] Council discussed General Fund questions, directed staff to review Budget Memos #1, 5, 6, and 8, and reached consensus on next steps for the BPOL tax and Transient Occupancy Tax introductions.
[3g] The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.